Ratings agency Scope is considering downgrading the country’s creditworthiness amid controversy over the US debt ceiling. The European credit rating agency said on Saturday that its second-best “AA” rating, previously awarded to the United States, would be reviewed for a possible downgrade. The backdrop is the country’s solvency, which is at risk as a result of increasing political polarization.
Since November’s congressional elections, President Joe Biden’s Democratic administration has faced a Republican majority in the House of Representatives. As a result, the debate over the debt ceiling, which has already recurred in such constellations, erupted. After reaching the $31.4 trillion threshold in January, the two sides have been unable to agree on the terms of the increase, putting the U.S. at risk of bankruptcy on June 1, according to Treasury Secretary Janet Yellen.
The US is currently rated “AAA” by rating agencies Moody’s and Fitch. Standard and Poor’s (S&P), on the other hand, like Scope, gives the country its second best rating, which is “AA+” from S&P. Unlike Scope, however, S&P was more optimistic that the credit dispute would be resolved in March and continued to describe the rating outlook as “stable.” Berlin-based agency Scope is considered the fifth largest rating agency internationally after Moody’s, S&P, Fitch and DPRS.
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